RBS - Direct Line have asked me to conduct due diligence for them alone on a residential conveyancing transaction , using the CML Lender’s Handbook. The borrower has his own solicitor (not on the
RBS - Direct Line conveyancing panel) How will this operate and are there different instructions from RBS - Direct Line in this case?
The Council of Mortgage Lenders, along with
RBS - Direct Line and other lenders developed a standard set of instructions where a solicitor is representing a lender such as RBS - Direct Line alone in a residential conveyancing transaction.
These requirements are contained at Part 3 of the UK Finance Lenders’ Handbook and are to be followed together with Part I and II.
The CML have published an example requirements letter to the borrower’s conveyancer for use by the lender's conveyancer, and sets out to the borrower's conveyancer, the documentary and information requirements of the lender's panel lawyer.
A long standing client of my firm is purchasing a property for £750k in Leeds requiring a mortgage advance over GBP 500k.
I am on the
RBS - Direct Line conveyancing panel but do RBS - Direct Line have a separate approved panel when the advance is above 400,000?
We only know of two or three banks that operate a separate approved solicitors panel where the mortgage advance is over a certain level.
You should nevertheless check directly with
RBS - Direct Line. At one stage HSBC would only allow Sole
practitioners to act for them where the mortgage was below
£150,000. We are not sure if HSBC still operate such a condition. In
your case it is best to check with RBS - Direct Line
One of our conveyancers is acting for a seller of a property and we have received a letter from the buyers solicitors who are not on the
RBS - Direct Line conveyancing panel requesting that we undertake to send certain post-completion documents to a law firm on the approved solicitor list for
RBS - Direct Line. We have not come accross this before. Do we give the undertaking?
You will be aware of the trend in recent years for lenders such as
RBS - Direct Line to take a much more pro-active approach in relation to the management and make up of their conveyancer panels. The knock on effect of this is that it is more likely that there will be a higher number of cases where a conveyancer is not on the
RBS - Direct Line panel. The situation that you find yourself in is where your client’s purchaser has his/her own lawyer and
RBS - Direct Line have appointed a separate lawyer to act on their behalf where the new CML Part 3 requirements apply. Section 11.1 of the UK Finance Lenders’ Handbook Part 3 requires
RBS - Direct Line’s panel solicitor to ‘ ...transfer the mortgage advance directly to the Seller’s conveyancer. The Seller’s conveyancer must be required to hold the mortgage advance on the terms of the required undertaking. The example borrower’s conveyancer’s undertaking letter includes a specific example of the seller’s undertaking’. You should expect to be advised to received the mortgage advance directly from the conveyancing solicitors for
RBS - Direct Line. You will no doubt be required to undertake directly to
RBS - Direct Line’s solicitors to discharge any charges secured on the property and to send directly to them the executed transfer and any other documents required to enable us to effect registration. Please remember to carefully consider undertakings in accordance with your firm’s protocol and record them in your undertakings logg. Please remember that as well as this breach of this undertaking having regulatory and compliance implications it’s breach could also result in your firm being removed off the
RBS - Direct Line conveyancing panel.
I have been a solicitor for nearly 30 years enjoy an unblemished record and have been refused acceptance on the
RBS - Direct Line conveyancing panel with no explanation. Am I not entitled to to know why?
For most lenders participation on the lender's panel of conveyancers is at the absolute discretion of the the lender. Many lenders reserve the right to accept or reject any application without giving any reason. You should check your original application to join the
RBS - Direct Line conveyancing panel to see if you are entitled to a reason.
Are there any specific RBS - Direct Line conveyancing panel obligations relating to Transfer of Equity Conveyancing?
RBS - Direct Line approved solicitors have to comply with the UK Finance Lenders’ Handbook instructions relating to Transfer of Equity. These are set out in Section 16.3. First, your firm must approve the form of Transfer of Equity (which should be in the Land Registry's standard form) and, if
RBS - Direct Line require, the deed of covenant on their behalf. You will need to check
RBS - Direct Line CML Part 2 conditions to see if
RBS - Direct Line have standard forms of transfer and deed of covenant. Please note that this requirement can change from one transaction to another so do check! Second,When drafting or approving a transfer, you should bear in mind that: although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage; the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check ; there should be no statement that all interest has been paid to date. Further obligations are set out in the UK Finance Lenders’ Handbook which have to be followed by all firms on the
RBS - Direct Line conveyancing panel
We had our RBS - Direct Line panel membership terminated but we have not yet been given a reason as to why.
I am completing a CQS renewal form what information should I put forward?
In this situation please explain on the application what steps you have taken to discover the reasons behind cancellation of your
RBS - Direct Line panel status.
In particular please provide details if you have received communications from the lender. E.G. before revocation of your panel membership did you receive any letters or calls from the lender informing you as to why they reached this decision?
My firm is listed on the
RBS - Direct Line
conveyancing panel and all set to complete a purchase shortly. My file does not contain a Mortgage Deed for the client to sign.
Who do I contact at RBS - Direct Line to get a duplicate Deed?
You should contact RBS - Direct Line
to obtain standard documents. The The Council of Mortgage Lenders Handbook incorporates an express question for lenders to reveal who to contact to obtain standard documents.
RBS - Direct Line in their Part 2’s state:
Please remember to disclose your RBS - Direct Line conveyancing panel number.